Central Petroleum pens gas supply deal with Shell in Australia
Sydney-listed Central Petroleum has executed an agreement with Shell Energy Australia, a unit of Shell, for 0.91 petajoules of gas supply over one year, starting January 2025, it said on September 15.
The agreement is for a firm gas supply, with take-or-pay provisions and a fixed price. The deal commercialises a portion of existing uncontracted production, the company said.
Central's gas will be aggregated with gas from the Mereenie joint venture to supply a total of 3.65 petajoules to Shell Energy over the one year term. The Mereenie joint venture comprises Macquarie, New Zealand Oil & Gas, Cue Energy and Central.
"This new gas supply agreement allows Central to broaden its customer base across the NT and eastern Australia,” Leon Devaney, Central's CEO commented.
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Central said it hopes to bring further gas to market from 2023 once it has completed its current Palm Valley 12 well and further development activity at Mereenie.